#3 What would you do?

If you did not lay the ground work properly upfront, knowing you are taking a listing that is about $20,000 over your CMA, by building in price reductions every 21 days in the listing agreement.  You might terminate your agreement, and let someone else spend time, energy, and money to market it.

I have a situation where the market was a sellers market when I took the listing and we priced the home at the very top of it's market.  Then the next week it slowed and nothing. The market CHANGED QUICKLY. It evened out.  Despite pleas to reduce the price I am ignored.  I can back up stats that show the shift and they have decided to ignore me. frustrating. 

I think a large price cut would be more effective than incremental cuts. I would call a meeting, go over market stats, and ask for a commitment on a $20,000 price cut. If I couldn't get that commitment, then it would be time to part ways. Ideally the clients would know the situation up front at time of listing, so the groundwork has already been set for the reduction, and you know they are committed sellers.